The European Commission has adopted a new set of State aid rules designed to accelerate the transition toward cleaner and more sustainable transport across the European
Union. The updated framework aims to make it easier for governments to support environmentally friendly transport options for both passengers and freight while ensuring fair competition in the market.
The new package includes the State Aid Land and Multimodal Transport Guidelines (LMT Guidelines) and the Transport Block Exemption Regulation (TBER). Both instruments modernise the EU’s State aid rules for land and multimodal transport and will officially enter into force on 30 March 2026.
While the TBER will remain valid until 31 December 2034, the LMT Guidelines have no fixed end date.
Replacing outdated 2008 rail rules
The updated framework replaces the 2008 guidelines on State aid for railway undertakings, expanding the scope beyond rail to include a broader range of sustainable transport solutions.
The new rules establish a comprehensive State aid framework covering rail transport, inland waterways, and sustainable multimodal transport, helping shift traffic away from road-based transport and toward greener alternatives.
What the new transport guidelines include
Under the LMT Guidelines, EU member states can grant State aid for a variety of transport initiatives, provided the measures are approved by the Commission and comply with internal market rules.
Key elements include:
Support for greener transport modes
The guidelines apply to land transport options that are more environmentally friendly than road transport, including railways and inland waterways. Multimodal transport projects also qualify if they combine at least one of these modes or integrate land transport with short sea shipping.
Investment and operating aid opportunities
Governments can provide financial support for projects such as building or upgrading railway infrastructure and inland waterway facilities. Aid may also support the launch of new commercial routes and compensate operators fulfilling public service obligations in the rail freight sector.
Stronger focus on green and digital transitions
The framework introduces more flexible rules for projects that reduce the environmental impact of transport or improve cross-border rail interoperability. These measures are intended to improve efficiency, safety, and integration between national rail systems.
Encouraging new market entrants
To promote competition and innovation, the rules include safeguards that help smaller companies access financing. Small and medium-sized enterprises and new operators will find it easier to obtain funding to purchase rolling stock and inland waterway vessels.
Faster aid through simplified procedures
Complementing the guidelines, the Transport Block Exemption Regulation (TBER) allows certain categories of aid to be granted without prior notification to the Commission.
This represents a major simplification for EU countries. Governments will be able to implement many transport support measures more quickly, provided they meet predefined conditions. The goal is to speed up investment while reducing administrative burdens.
The categories of aid covered under the exemption broadly mirror the rules outlined in the LMT Guidelines.
Why the EU updated the rules
The reform follows the 2019 evaluation of EU State aid rules for sustainable land transport, which found that the existing railway guidelines helped encourage a shift toward rail transport and improved interoperability across the EU.
However, the review also highlighted the need to modernise the framework to reflect evolving transport markets, technological progress, and the EU’s climate and sustainability goals.
Since then, the Commission has carried out several consultation steps, including:
- an impact assessment launched in October 2021,
- a new enabling regulation adopted by the Council of the European Union in December 2022,
- and a public consultation on the draft rules in 2024.
These consultations helped shape the final version of the new guidelines and regulation.
Supporting Europe’s green mobility transition
The updated State aid framework is expected to play a key role in shifting transport flows away from road transport toward more sustainable options such as rail and waterways.
By simplifying procedures and expanding financial support opportunities, the EU hopes the new rules will accelerate investments in greener infrastructure and transport services—while maintaining fair competition across the single market.